Average price of a UK home up £3,000 in April, Rightmove data shows – UK Times

The average asking price for a home in Britain saw a modest increase of nearly £3,000 in April, new data from property website Rightmove reveals.

While the typical price tag rose by 0.8 per cent month-on-month, this figure falls short of the long-term average April increase of 1.2 per cent.

Across the country, the average asking price now stands at £373,971, marking a £2,929 rise from the previous month.

Rightmove attributes the subdued growth in new seller asking prices to two key factors: elevated mortgage rates and intense competition among sellers, with available homes reaching an 11-year high for this time of year.

Interestingly, buyer demand has remained relatively robust among first-time purchasers. This suggests that despite higher mortgage costs, prospective first-time buyers are not being deterred from making enquiries, indicating a resilient market segment.

But it said price growth in April has been mainly driven by higher-priced, “top of the ladder” homes with four bedrooms or more, where some buyers are cash purchasers and are less sensitive to increased borrowing costs.

Colleen Babcock, a property expert at Rightmove, said: “With mortgage rates remaining elevated due to the war in Iran, it’s not a surprise that price growth is proving strongest in parts of the market less exposed to higher borrowing costs, such as top of the ladder homes, while sectors more exposed to interest rates are seeing slower momentum.

“Across Great Britain, Scotland stands out as an example of resilience, with average prices rising by over 4 per cent. Lower average asking prices and a faster home-buying process continue to support price growth in the Scottish market.

“However, for most of the market, the combination of rising mortgage rates and the number of homes for sale being at its highest level for the time of year over a decade, means that competitive pricing is crucial for sellers looking to attract buyer interest and secure a sale this spring.”

Matt Smith, a mortgage expert at Rightmove, said: “At the start of the year there was growing optimism that (the Bank of England) base rate would continue to fall, but that picture has shifted following the conflict in Iran.”

He added: “The initial shock appears to have passed, with mortgage rates stabilising over the past couple of weeks, but they remain elevated.

“The next moves will depend on upcoming UK inflation data and how the Bank of England responds. If policy decisions align with current market expectations, a period of relative stability is more likely than meaningful falls.”

Several lenders have made mortgage rate reductions in the past week following falls in swap rates, which are used by lenders to price mortgages.

Marc von Grundherr, director of Benham and Reeves, said: “The combination of heightened geopolitical uncertainty and the increase in mortgage rates has understandably caused some buyers to pause for thought, particularly across the higher end of the market where affordability is already stretched.

“However, what we’ve seen is not a collapse in confidence, but a more cautious and considered approach from both buyers and sellers.”

He added: “London is often one of the last markets to turn, but when momentum does begin to build it tends to do so strongly.

“We’re already seeing the early signs of that return, particularly in those areas where pricing remains realistic and buyers can still see long-term value.”

Mark Wiggin, director of Mark Wiggin Estate Agents, said: “Buyers start with three things: the price, the photos and how long a home’s been listed.

“If something’s been on the market for more than a few months, buyers immediately assume it’s overpriced. In this market, sellers must respond to that feedback – the market always tells you when the price isn’t right.”

Polly Ogden Duffy, managing director at John D Wood & Co said: “With an increased supply of homes – particularly flats lingering from 2025 – buyers have more choice and are less inclined to engage with overpriced properties, meaning sellers who price too ambitiously risk missing out on serious, proceedable buyers.

“In contrast, the family housing market is continuing to perform strongly, especially in areas with sought after schools, where demand can still outstrip supply and, in some cases, result in multiple bids.”

Peter Ryder, managing director at Thorntons Property Services, said: “The property market across the East of Scotland and Inverness continues to show resilience despite wider economic uncertainty.”

The report was released as separate research from property firm Hamptons said that rental price growth on newly-let homes accelerated in March.

The pace of rental price growth on newly-let homes picked up in March, with average annual growth across Britain doubling from 0.5 per cent in February to 1.0 per cent in March, to reach £1,373 on average per month, Hamptons said.

Aneisha Beveridge, head of research at Hamptons, said: “While rents fell last year, early signs suggest the pace of rental growth is beginning to pick up as tenant demand rebounds.”

The Hamptons lettings index uses data from the Connells Group to track changes to the cost of renting and is based on achieved rather than advertised rents.

Here are average monthly rents on newly-let homes in March and the annual change, according to Hamptons:

London, £2,305, 2.2%

East of England, £1,260, 0.6%

South East, £1,465, 0.0%

South West, £1,247, 0.2%

East Midlands, £999, 1.8%

West Midlands, £1,087, 1.2%

North East, £823, minus 1.3%

North West, £1,028, 0.9%

Yorkshire and the Humber, £917, 0.2%

Wales, £879, minus 0.8%

Scotland, £1,014, 0.8%